Royal Dutch Shell has announced its subsidiary Shell Nederland Raffinaderij’s decision to discontinue construction on a biofuels plant in Rotterdam, the Netherlands
The project, initiated in 2022 at the Shell Energy and Chemicals Park, was intended to produce sustainable aviation fuel (SAF) and renewable diesel from waste. It will not advance following a reassessment of its commercial and technical viability.
The decision comes as Shell aims to solidify its role as a major player in the global energy transition.
In 2024, Shell Nederland Raffinaderij temporarily halted the construction of the facility due to current market conditions impacting project delivery and competitiveness.
Shell had taken a final investment decision on the Rotterdam biofuels plant in September 2021. The plant was designed to produce 820,000 tonnes a year of SAF and renewable diesel.
Shell downstream, renewables and energy solutions president Machteld de Haan said: “As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive to meet our customers’ need for affordable, low carbon products.
“This was a difficult decision, but the right one, as we prioritise our capital towards those projects that deliver both the needs of our customers and value for our shareholders”
“We continue to believe that low carbon molecules, including biofuels, will underpin the future energy system. Shell is at the forefront of this industry and its development as one of the world’s largest traders and suppliers of biofuels, including SAF.”
The company also confirmed that the Netherlands continues to be a crucial location for its diverse energy operations, which include upstream oil and gas production and a network of retail sites.
Shell said that it has invested €6.5bn in various energy transition projects within the country. These include CO2 storage initiatives like the Porthos CCS project and the development of renewable hydrogen at Holland Hydrogen 1.
The company had earmarked an expenditure of $8bn on lower carbon alternatives between 2023 and 2024. These investments covered areas such as carbon capture and storage, hydrogen, and low-carbon fuels.
In 2024, Shell emerged as a major player in the sustainable aviation fuel market, particularly in North America and Europe where it is said to have contributed nearly 20% of total sales.
The Avelia platform, developed in partnership with Accenture and American Express GBT, is another key initiative by Shell to bolster the supply and demand for SAF. By March 2025, more than 57 corporations and airlines had engaged in transactions via Avelia, resulting in over 33 million gallons of SAF being integrated into existing fuel networks.
In addition to these initiatives, Shell’s joint venture in Brazil with Raizen focuses on delivering low-carbon bioethanol. In 2022, Shell expanded its capabilities by acquiring EcoOils, a waste recycling company that produces advanced biofuels feedstock in Malaysia and Indonesia.
EcoOils utilises advanced recycling technology to process waste into valuable feedstocks like Spent Bleaching Earth Oil (SBEO) and Refined Palm Oil Mill Effluent (R-POME).
